The idea of this study is derived from observing the profitability of stock investments following the phenomena of continuously rising(or falling)prices of stocks and continuously overbought(or oversold)signals emitte...The idea of this study is derived from observing the profitability of stock investments following the phenomena of continuously rising(or falling)prices of stocks and continuously overbought(or oversold)signals emitted by technical indicators.We employ the standard event study approach and technical trading strategies to explore whether investors would exploit profits in trading the constituent stocks of the Korea Composite Stock Price Index 50 and Shanghai Stock Exchange 50 when the aforementioned continuous phenomena occur.We find that both the Korean and Chinese stock markets are not fully efficient;this finding may enhance the robustness of the existing literature.In addition,we reveal that contrarian strategies are appropriate for the trading stocks listed on the Korean stock market for all the cases investigated in this study.However,momentum strategies are appropriate for the Chinese stock market when continuously rising stock prices and overbought signals are simultaneously observed.These findings imply that the difference in investor behaviors between the Korean and Chinese stock markets might result in dissimilar trading strategies being employed for these two markets.展开更多
We hypothesized that sharp movement in the USDX,GBP/USD,and USD/CNY might result in stock market fluctuations owing to heightened investors’sentiments.The subsequent performance of trading stocks right after such sha...We hypothesized that sharp movement in the USDX,GBP/USD,and USD/CNY might result in stock market fluctuations owing to heightened investors’sentiments.The subsequent performance of trading stocks right after such sharp movements in exchange rates is seldom explored in existing studies.We examined the historical data of the constituent stocks of the DJ 30,FTSE 100,and SSE 50 indexes and found that the share prices were more volatile after sharp movements in the CNY,even though the currency is less volatile because of China’s exchange rate policy.However,for the USD and GBP,share prices of the DJ 30 and FTSE 100,respectively,rose after sharp appreciation and depreciation of the currencies.展开更多
文摘The idea of this study is derived from observing the profitability of stock investments following the phenomena of continuously rising(or falling)prices of stocks and continuously overbought(or oversold)signals emitted by technical indicators.We employ the standard event study approach and technical trading strategies to explore whether investors would exploit profits in trading the constituent stocks of the Korea Composite Stock Price Index 50 and Shanghai Stock Exchange 50 when the aforementioned continuous phenomena occur.We find that both the Korean and Chinese stock markets are not fully efficient;this finding may enhance the robustness of the existing literature.In addition,we reveal that contrarian strategies are appropriate for the trading stocks listed on the Korean stock market for all the cases investigated in this study.However,momentum strategies are appropriate for the Chinese stock market when continuously rising stock prices and overbought signals are simultaneously observed.These findings imply that the difference in investor behaviors between the Korean and Chinese stock markets might result in dissimilar trading strategies being employed for these two markets.
文摘We hypothesized that sharp movement in the USDX,GBP/USD,and USD/CNY might result in stock market fluctuations owing to heightened investors’sentiments.The subsequent performance of trading stocks right after such sharp movements in exchange rates is seldom explored in existing studies.We examined the historical data of the constituent stocks of the DJ 30,FTSE 100,and SSE 50 indexes and found that the share prices were more volatile after sharp movements in the CNY,even though the currency is less volatile because of China’s exchange rate policy.However,for the USD and GBP,share prices of the DJ 30 and FTSE 100,respectively,rose after sharp appreciation and depreciation of the currencies.
